What amount of services were recognized over time by Bor Restoration in 2022?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
2020:
The following table provides information about significant changes in deferred revenue on franchise fees for the year ended December 31,:
| 2022 | 2021 | 2020 | |
|---|---|---|---|
| Deferred revenue, beginning of year | $ 94,350 | $ | $ |
| Revenue recognized that was included in deferred | (04.250) | ||
| at the beginning of the year | (94,350) | ( | (100 000) |
| Revenue recognized during the year | (393,597) | (182,000) | |
| Increase in deferred revenue due to cash received | 487,947 | 182,000 | |
| during the year | |||
| $ | $ 94,350 | $ |
During the years ended December 31, 2022, 2021 and 2020, the amount of services that were recognized over time amounted to $0, $393,597 and $182,000, respectively; and no services were recognized at a point in time.
(5) Leases
The Company evaluated current contracts to determine which met the criteria of a lease.
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, the amount of services recognized over time for the year 2022 was $0. In contrast, the amount of services recognized over time in 2021 was $393,597, and in 2020 it was $182,000. The FDD specifies that no services were recognized at a point in time for any of these years.
This means that Bor Restoration did not recognize any revenue from services over time during the 2022 fiscal year. This could be due to various factors, such as a change in accounting methods, a decrease in service revenue, or a shift in the timing of revenue recognition.
A prospective franchisee should inquire with Bor Restoration about the reasons for the $0 revenue recognition in 2022. Understanding the reasons behind this could provide valuable insight into the company's financial performance and stability. It is important to note the amounts recognized over time in 2021 and 2023 were $393,597 and $4,095,298 respectively.